SBP mandates 100% advance payment for sugar exports to Afghanistan

October 02, 2024 (MLN): The State Bank of Pakistan (SBP) has directed banks to ensure that 100% of sugar export proceeds to Afghanistan are received in advance through banking channels.

To note, the Economic Coordination Committee (ECC) of the Cabinet allowed the export of further 100,000 MT of sugar, which has also been ratified by the Federal Cabinet.

Accordingly, the central bank advised Authorized Dealers (ADs) to process the requests of eligible applicants for “Export of Further 100,000 MT of Sugar”, subject to submission and fulfillment of certain conditions.

ADs will obtain proof of allocation of quota by the respective Provincial Cane Commissioner and keep a copy of the same in their record.

They will obtain an undertaking from the exporters that consignment would be shipped within 60 days of allocation of quota by respective Cane Commissioner.

ADs will ensure 100% advance receipt of export proceeds through banking channels, in case of Afghanistan only.

For other destinations, the export of sugar may be made against Letter of Credit (sight).

ADs will submit sugar export transactions and shipment updates to the Director, FEOD, SBP-BSC, Head Office, Karachi on weekly basis as per the enclosed reporting format (Annexure-A) at sugar.epd@sbp.org.pk by every     Friday at 1700 HRS.

"ADs are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance there against," the SBP's notification reads.

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